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tv   Fast Money  CNBC  June 18, 2014 5:00pm-6:01pm EDT

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>> i will comment on the redskins, it's a negotiation if the owners dave dan spieder half a billion, he'd change the fame. >> i think for me, we will wait and zay see. they're monitoring the data. >> it depends. great to see you this afternoon. appreciate it. >> that does it here on the closing bell, melissa lee and ""fast money" is next! . >> fast money starts right now. at the nasdaq markets in new york city's time's square the s&p 500 closing at a record high today. i'm melissa lee the traders are here. we will have more on the fed move today coming up, plus, we are making "fast money" mystery right here tonight for the first time ever, we will have live voting on screen during our street fight. first, it is here. investors seem to leak it. amazon unveiling its fire phone a few hours ago. it's 199.99 with a contract.
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it is a 4.23467 display. they have the beg reveal. so will this be a game changer for amazon, let's be clear, this is a portal to its contents, so people can engage more, piaa more. >> we have to over caffeinated columns to my next. the next quarter is essential. if you look at last quarter, to me, amazon comes down to the margins. operating quarters were not good, i think the street was looking for 1.'021%. i think july 24th, we had a street fight. we said it would trade up to 345. i'm in that camp. i'm fire i firmly in the higher camp. >> the 3% move on the day, was that overstated or deserved? given the product? >> let's be honest, clo es the deal. they can price it whatever they want. it's priced way too high at 650 without a contract. to me, if it is a portal, i don't know about you people, it's not hard to buy the 100
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million items listed on amazon right now. i don't need top a subpar with a 3d. >> everybody isn't a tech officianado like you are. maybe they can pull it up on amazon. >> it's the most gimmicky thing, maybe it doesn't cost amazon enough to put this hardware in people's hands, because of its price, how is that? there's the silver lining. >> i'm a champ. i don't get it. i sort of wonder, you have access to those products. i wonder, how much do they lose? how much do they lose on this bonus? is it worth it? what has to happen in. >> it doesn't really matter, right? it doesn't matter if they lose money. it matters if they get the enkremtal sales they are going to get with the features on this. >> i think you are right. first of all, i like the gimmicks. now you can watch the company lose money in three days. let's talk reality. you talk about online
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transactions at 20% of all internet transactions, $235 billion spent on mobile last year. they have to be in the space. that i have no chose. we are talking this like should they do a phone, soon they? this is the market, folks, if amazon will be at the center of ecommerce to the foreseeable future. it's not a should or should they? it's how soon do they get started? what do they open up with, how many it rakes down road to not crush anybody? i'm not telling you this is a great product or they will sell a ton of them. it's a parade. they will learn from it. i will not be shocked, they continue to get better year in, 84 out as they it rate. that's ma amazon has always done. >> so to me, here's an analogy, let's talk about baseball, okay. there was a lot of talk, but they are the killers, right, in social media, they will be around for a long time. you think a lot of analogies, they tried different things. they tried skins on top of other people's ard ware, it doesn't work, they were thinking about a
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phone. you don't, just because are you the doll nant eretailer and eretailing is going to be growing at a rampant. >> isn't it a better analogy within amazon, you take a look at kind him. how is a kindle -- they owe owe from they don't need the fire. they need the e-reader. >> that they give away for free. >> every one of your arguments, dan, they are valid artilleries. we can go back to 2008 and say the same thing when apple started, why are they making a phone, what do they know about telecom? on and and on, i submit to you, they had no choice. >> great to see you, sir. >> i don't know what metrics we are using. but. >> it's not going to sell a lot of new ones. i have no rob with amazon being
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in the game. they make the tv, they make the phone. because of where ecommerce is going, they don't want to be relegated to being an app on the google store and they want to take it in their own hands the price is way off in my book. they didn't do anything that disrupted the ecosystem. the $360 phone on a tier contract on one carrier. we will sell a couple million of them. if they get 116 million subscribers on at&t, you are going to get 5% of that mark, you are talking less than 5 million units a year most likely. no problem with them getting into the market. don't expect this phone to be a success. >> i'm curious, is this what they said when they came out with a kindle? why isn't amazon getting the hardware? why do they get to do the? i don't understand, if they're not disrupting landscape in there if you think of the roots, they're an ecommerce provider of
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physical books music and movies, those products become dig tides. who is the leader? it's amazon and kind him. who is the leader in music in apple. who is the leader in digital movies? netflix. they are playing catchup. arguably, you need the phone to catch up on the music as well. again, you just don't want to be an app in someone else's ecosystem. because it's important to pay attention to the battle between google and amazon. if you wanted a tv back in the day, you would search on google for a tv. now, many people directly go to amazon him they cut out google. those are expensive puts google is losing, amazon is working hard into advertiseing. i love my google. the advertising is very relevant and targeted. so those two companies are on a collision course. >> street cut to amazon. a lot of slack until two quarters ago. >> falling off. >> they are now looking at everything. >> yep. >> last quarter, margins were not great. can they redeem themselves on
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july 24th? >> so, you know, if they want to tap down the investment, going into an area leak a bone is not the way to do it. right. this is not a phone they will be making money on. there is a lot of expense hein it? it suffering costs. it's going to reiterate next year when they have to roll out a new version of the phone. >> i want to switch gears and ask you about a bold call you made mid-afternoon on the charts, blackberry charts spiked. you released a two notches upgrade between a buy from accelerateing. this, okay, ahead of blackberry earnings out tomorrow morning. >> future of smartphones. >> why now? >> so it's a play on john chen. i'm not saying blackberry will be able to make the turn. all right. it's a play on sell if versus sell through. they've actually been selling through more phones about north of 2 million phones per quarter for the last three quarters. so they have been working down this channel inventory. there is a demand for
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blackberrys beyond the united states, obviously, there is little demand. i leak what ken did with the amazon app store, right, bring tack in. most importantly, it's a play in front of this earnings. i think we will see cost reduction and slightly better handset numbers and the stock is trading at bare bone asset levels. so any good fuse will give us a lift. i think the short trade, which we were a fan of for so long is weening down. >> colin, listen, everything you state has been a case under numerous managers the last couple years. it's been trading at asset levels. listen, it's not really that difficult call. the stock is not going through. that being said on the product front, they basically abandoned consumers. that's declineing, are you worried about the bring your own device thing, cloud, cloud, cloud, epn slapped on your own device, everybody wants a touch screen part is phone that does everything the blackberrys don't do for the most part. isn't that the story? >> absolutely. i'm not saying that i will make the turn. the quarter, they will be eveck
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ejected. it's a special situation. it's a turn around play. it's not for everyone, i do think you will see and upward movement. i might be a quarter or two early. >> tom gillis. josh brown, would you be a buyer of back berry? sample we are talking about the rolling handset, nokia is the biggest type of a breakout of the year, happening right now coming out of a 14-year secular decline, nlk on every trader's screen right now, not blackberry. >> karen, what do you think? collin, it's still a stress situation here. if you turn profitability sooner, then that can be an upside. >> i don't know, it's hard, i don't have a real thought of where there is long term going to be. it should be great. >> you know what you get when you trade the bottom? >> yeah. sticky fingers. >> is this one, i know. >> too smart. >> to use that expression. >> i'll say, it's an old market saying. here's the thing, this thing has
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been traded at cash at this level or that level. it doesn't work if the phones don't work. i agree with john, the phones don't work. whose thumbs don't work? they have the wrong product. they're focused on the wrong thing, the stock, when you got excited about it, they will be in the app story, enterprise users are in the app store. >> the blackberry app store is the one that helps you find an apple store. >> getting earnings on red hat, it is moving higher in the session. don, you have the details? >> melissa, lennox comes to mind here. they are posting better than expected first quarter profits and seas, boosted by growth in precipitation revenue. a lot of software companies are getting people prescription fees. red hat is the largest commercial distributor of that lennox distributing system. they are up about 4% in the
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after hours trade, about 500 shares have traded. 18% bump in prescriptions helping to drive those results. back over to you. >> style us or trade? >> i don't think it's 4.5% decent. $60 is the line in the sand a couple years ago. it failed. that's what it needs to fet through. this stock is pretty expensive valuation 30 times earnings. few want to be in the space, oracle is your play. >> inflation, what inflation? fed chief janet yellin brushing aside a potential rate hike. we will tell you how to prepare for a win that day when it does come. that's next. tonight. for the first time ever, you, yes, you, will be able to vote live during our show logging on and vote t. results will be on screen, can you vote, by the way, as many times as you want. josh brown is taking on dan mason ahead of oracle tomorrow, get your phones and tablets for
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the first interactive street fight coming up how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.
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. if the economy proves tore stronger, increases in the
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federal funds rate target are likely to occur sooner and be more rapid than currently envisioned. inflation continues to run well below our objective. we are still some ways away from maximum employment. they both call for the same policy, family a high accommodator of monetary policy. i see things roughly in lean with where we expected inflation to be. >> and fed chair janet yellin giving hurt second talk of the year. palm, good to see you. >> how are you doing? >> let's talk about the market reaction. we went into this meeting thinking there could be a potential, they entered this market so complacent. what do we finally see the feds move? >> well, when we finally see the fed move, which will be then or 12 months from now, which is exactly where expectations were versus today, there have been no change by the prkt.
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i think that's a valid reasoning. the statement didn't change anything. when we do get that first hike, you have a long pause and a hike like we've had more than a year without the fed doing anything, they hike rates and tend to see dislocations in three periods since 1994 when the fed started disclosing their decision on the fed's fund rate, following the first hike, there was a correction in the market 8 to 101st surrounding that hike. >> at the same time, that decline could start happening gradually. >> it could have happened. >> in one case, in '94, it pretty much happened when the height was announced. that's the first time they were announcing that sort of thing. in 1997 and 2004, the market traded sideways a bit. drifted lower. you did see the majority of the decline came after the first rate hike. it was a brief sell-off.
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>> somebody asked her about. she made a comment about full employment and their inflation levels and the last time she was interviewed, she couldn't identify what full employment meant. they took the 6.5% away. steve liesman said it was noisy, are they moving the goal post? it feels as though they change the rules as they go. >> we have had spurts where inflation went up a little bit briefly and came back down, the fed has been telling us non-stop the last several years, they willerer on the side too late any early. one month above their target. the pc not at their target. i think they're going to need to see more than that. >> is it instructive to look at the u.k. had noise, i don't know, a week or so ago, they said they will raise, there was
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a sell-off. it wasn't, it was hardly a melt june? >> no, yeah, like, the u.k., it's a different scenario and a different animal. >> in the long term, money is coming into the mark. i think the cpi yesterday, it caused people to worry. there is not much else going on, we caused all these theories the fed will come out too hawkish. they came out today. they didn't mention the language was the same as the last statement. >> paul, good to see you. did if news conference change your view at all, josh? >> no, the becker picture is three instances over the last 20 years, an okay sample size the data suggests that 60% of the time interest rates are going up, stocks are going up with them 40% they're not.
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essentially, we can't take this one issue and concoct the scenario where we can position portfolios. i think what we want to think about is why are our rates rising, if they're rising for the right reason, i don't know that's something we should say we might have an 8% correction. >> you mentioned the 8%, that's what it's been the may high the yield in the ten 84 was 1.wi6r7k9s up 1%. you know what the s&p has done? it's gone up 25% when you think about i. here we are, the yield and ten year at 2.6. if we get done with the taper in the fall. the fed funds rate inches up, people will get in front of this. if growth comes back, it doesn't have to be above 3%. if growth is accelerating, global growth inches up, yeemds have to go higher. if they don't, we have real problems. >> coming up next, why chef boy
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ardee is causing pains for conagra. >> dennis gartman has given his take now on the show. we have a trade update after this. .
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fedex soaring on the top and bottom line. volumes in the ground business, chairman and ceo fred smith was on cnbc moments ago, take a look what he had to say about his companies performance as a whole. >> we were relatively confident about the economy. we see a bit of an act sell
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racing. we think the quarter we are in now could be as high as 3.9%. >> guy, 52 week itoday. >> this was a 6% higher good quarter? i'm not sure that was the case. the goes was nothing great. 17 times forward earnings? reasonable. i don't think you can go out and initiate a long position in fedex up 6% on five times formal volume. this is too much to me in one day given these earnings. >> would you rather? . >> i love this game. ups. >> really? i was going to ask you that. >> i worked at ups. i got to wear the shorts. >> very cute. wow. >> hot, hot, hot. >> there it is. >> nice gams. let's move on to conagra, weakness in consumer foods, specifically singleing out the
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chef boy ardee line. >> this is one of the ugliest carts i have seen if a long time. this was cost cutting, efficiency story, a lot of others left it for dead, these are not the brands of the consumer of tomorrow. i don't like the technicals here. it could get cheaper. the only thing i have is guy and ups. >> whoa, whoa. >> i would avoid the stock and see guy in the ups sorts. >> really in. >> there you go. >> self serving. >> kansas, kev boy ardee. sorry. >> what is thatic, original egg thing? >> that's what i mean, they make this packaged salty stuff nobody is eating food out of cans anymore. >> take a look at the major tankers, all rally well over 2%
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today, container. >> we talked about a little starting to really come to fruition. the goal is the transportation of l & g. liquid national gas. the face i space is on fear right now. there is a lot-of-growth. you head to china, you have us exporting l & gr. lpg is a byproduct of fracking. it's liquid gases. it's a different kind of tanker, this, too, is a booming business. we will be exporting this. there will not be enough space to take all of that cargo, you will see upward revisions if day rates. >> all right, sticking with energy here, on monday's show, dennis gartman gave a rare stock pick based on his reading in iraq. take a listen.
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>> the united nations has become more and more self sufficient. fracking is the place to be. i usually don't like to look at different stocks. hclp has been a wonderful proponent or a wonderful benefit here. >> high crush partners up about 15% since that call on monday are you holding it or folding it, dennis? >> i'm folding it. force i bought it because i like the dividend. i bought it because i reich being involved in the fracking business. it was one of those products that's actually incumbent in fracking. it's like owning the jeans makers during the great gold rush of the 1840s. those are the people who made the money and if fracking, it will be the people who supply them to major component parts. i wanted to own that. i to the i would be owning hdlp
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for a year. i wanted it for the dividend primarily. when someone gives you 15%, 13% or something in four days. it's time to go to the side leans. the show is called "fast money." it was a ridiculously "fast money." i went to the side line zpls what did you buy instead? >> an old story of mine, more of doing the tension that have been working. they laughed at me back in october last year when i wanted to buy aluminum. i bought more today and aluminum stocks made more ty highs. i'm going with the simple things incumbent in long-term exec growth. i think this is a global economic upturn. so buy aluminum. it's making new highs. it's been working. >> dennis, great to hear from you. when he said they were laughing at me in october value, that wasn't you, was it? >> no, sir toms wyatt who said they flee from me, those who did pe seek. do you recall that poem?
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>> no. >> that's a little trade school. i memorized that poem in grade school. >> it wasn't me, esaid three-quarters ago it had a 12 handle if you recall. >> you were laughing. >> coming up income, consolidation in the house, could the kip sector be the next space ripe for mna activity? that's next. later on, it's been a solid year of gains for ooracle. it is a street fight if tech land heading your way, tonight, for the first time ever, we're revealing a brand few way to cast your vote. lock on to cnbc doak slash vote live during the fight. get ready, we start voting when the street fight begins in just a few minutes. .
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advantage of the country's lower corporate tax rate. our next guest in chip making is the next space. let's bring in the semi conductor analyst, great to see you. >> we have seen quite a few deals of late so this is sort of another factor to pete isen the motivation. >> yeah, 11 so far this year. that means medium and large deals. so, yeah, it's hot. >> so inversions, are there many candidates we can say, that is a target, it is overseas for u.s. chip companies? >> there are a lot of tech physical also on how you can structure a tax inversion and what candidates can be included in that. so what we did was we looked at about 200 world wide companies, looked at potential mergers, looked at companies of size for some of the u.s. companies to birth into. we came with thought provokeing
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combixs there. one would be qualcomm purchasing arm holdings. that would be essentially an i.p. powerhouse in mobile him they would have not only the base side, but also the pain brain or the apps processor, that combination towing would be a rolety power house in that side of the market. >> you are also thinking intel from media tech? >> yes, again, these are somewhat low probably situations in a lot of cases here, this is one that made sense for us the media techs a taiwanese company, they could envert and go to a better local like ireland on swrz switzerland. they have only one or two handsets to date. media tech, a lot of people don't know this, they are the second largest base fan provider in the world behind qualcomm that would a give intel a nice
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put into mobile it would give them more capacity. foundries and strategies they have been working on hard in scale, semi conductors are all about scale. >> i want to put up the other combinations christian outlines, you say they are interesting combinations, does that mean they are within the realm of possibility? completely within the realm of possibility, plus they immediate the dpriens here, essentially you take your tax rate. >> which is the highest combination of probability in your view? >> i actually like the ti for an xp. there is caveats to all these deals. it's a little raw raw and may not want to go abroad from a pr
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stand point. i think the most interesting would be a qualcomm for arm. >> christian, good to see you? any options activity? especially the target names? >> not for these reasons, i think he makes points about the rah-rah stuff. we talk about the tax liabilities. from a pr standpoint, strategically, it has to make sense to do the deal. >> from a pr standpoint, if they can lower tear tax rate and improve returns of shareholders don't they actually explore something? >> that's an interesting question, i think if we see a number of these happening, there will be some rapid. >> big movers of the die.
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a pop for chicago bridge and iron up 2%. >> they said they see accounting regulators and an analyst came out and said everything looks fine. i think you saw the plus, it traded against $66 million. i think it will run again this year. >> soda stream just, i don't know, takeover rumors seem to ms.le in this one, maybe it's pepsi, maybe it's someone else. a lot of the october calls traded 45 and 52.5. i wouldn't jump in just yet. >> drop from outer wall down 6%. josh. >> this is the old coin star. the stock broke every level of technical support on high volume after getting cut from a small firm. the chart going into today was
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sloppy. i think that's the purge. i wouldn't buy it. there's been so much damage done, i don't love it. >> adobe up 8%. dan. >> beat and rays. the stock gap gapped on mattive volume. it's a $33 billion mark cap that traded nine tiles sales. i think this is one you want to let come to you. >> a pop for creative direction. con yes west recently spent quality time using the photo app taking four days to retouch his wedding photo to wife kim kardashian. kanye says after the photographer allegedly backed out of the big wedding, he was forced to take up his game as instagram designer. kanye's creation is the most well leaked photo in the history of the app. >> so it was worth it. he won interest he won. >> four days on his honeymoon
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doing that. >> no winner on that one. >> that look of disgust. >> total disdean. >> you know the way people are. >> not a beg easy thing. >> no, i love new orleans. i think it's fantastic. >> hedge funds, argentina could be in for big returns. but the country doesn't want to pay up. kate kelly's got this story. >> there was, melissa. it was a packed courtroom in downtown manhattan, by the way, where hedge funds went to hear the latest fuse from a judge on whether he would respond to talk from argentina to holders of billions of dollars in these bonds, suggesting they might not face out. a u.s. supreme court ruling would help it pay to elliot management and likely billions more to other hedge fund holders. they described the investors as extrorgsists to whom they would to the bench today, however, argentina's lawyers took a
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different note, touching rather couching the speeches as political and intended to address the broad question of how the country would face mounting bond payouts at its cash reserves, which football not even 30 billion could not accommodate. arlg argentina are willing to negotiate. the lawyer added that argentine officials would come to the u.s. next week to talk to the so-called holdouts. the judge was not easily play indicated. notably, it's refusal to comply with its own judgments, finding it should pay the holdouts as a charade. he ruled they imploded last night, which involved renegotiating existing bond arrangements and relocating them to an argentine jurisdiction would be a investigation of the court's orders. among the attendees is a who's who, including representatives for elliot, of course, blue mountain and arelius and perry capital as well.
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they viewed it as a good outcome. judge said federal governmenttive things. it was clear he didn't, in fact, insist they put the money in escrow right now. so it could have been worse. >> so that's the positive. >> that's a positive for argentina. they have a june 30th deadline for existing bond holders who restructured in 2010. not arguably, they have to pay elliot and the other holdouts as well either before or at that point. >> the 30 day grace period starts june 30th. >> so really they have until july 30th. but they have ignored many past judgments. they took it all the way to the supreme court. the supreme court deferred to the lower tourts kurtz. really, i'm not sure how much faith they have it will work out in the bond holder's favor, although, they can't continue on leak this if they ever want to act says the international credit markets. >> will they take anything other than par?
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>> that's a beg question. maybe the beggar question is will they take some debt? there doesn't seem to be enough cash to pay. the general idea of the atmosphere among other investors is that they will. they will negotiate. they'll take some debt. it's tough to say. this has been ament-year corporate battle. in this case, in general, they tried to seize a vessel they thought belonged to argentina off the coast of africa years ago. they're creative and aggressive. >> thank you for coming by. >> coming up next, our first interactive strooed street fight ever. see how other people are voting. dan and josh go head-to-head on oracle. log on to cnbc.com/vote. vote as many times as you want. more fast times straight ahead. during the two weeks at wimbledon.
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true tennis fans want to know what's happening, they don't want to just see what's happening, they want to know and understand why it's happening. anybody can just put data up, but we want to get a reaction, make it far more interactive. we rely on the cloud to provide that immersive digital capability.
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but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform,
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the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. . software maker oracle trading at its highest levels. two traders are ready to dual it out. before we get to our street
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fight, we are launching a brand few voting tool tonight. lock on to cnbc.com/vote on your computer, phone, tablet during a street fight and click on the trader you agree with the most. we will have our results live as the votes come in. by the way, you can vote as many teams as you want. only during the 90 seconds of the street fight. so let's get ready to do it. 90 second on the clock. josh, go first. >> so much buildup. i'm freaking out, jumping out of my skin. it's simple. technically oral is perfect, have an ascending moving day average. this is a buy, not a sell. look at it from a valuation stand point it's now 8% away from the all time highs of 2000. back then it sold 20 times earnings, 10 billion if revenue, now a forward p.e. unlike 40 billion in ref few.
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they have a cash flow multiple beyond anything else in software. i looked at the whole sector, when you looked at the profit par gins, it's so fat. they go swimming wearing a tee-shirt. again, you can't find that in large cap tax. i think you buy it right here. >> in the lead, josh brown. >> i think there is not a lot to boy. you know how much evenings have grown in 8%. sales 3%. to me, there is nothing that interesting going on here they are only expected to grow 8% next 84 this company has made 100 acquisitions in the last year for $50 billion. they are not growing. they are saying they will make a $5 or $3w68 of a sale company.
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this is not a great entry here. >> don't fight the tape. the market has broken. >> the voting is closed. nathan the bear on oracle. >> i see if you vote on votes. >> i would like a recount. >> speakinging of counts, dan won by 12 votes out of 21,000 votes. >> get out of here? >> 5 people voted. you can vote as 'times you want. >> can we brake it up into the quarter tomorrow? investment like an entry on an investment or a trade rer two different things, i'm saying you made the great point it's a 14-year high. it's about 10%. there is no growth here, people. that is the issue. valuate here.
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you get in there. buy in. >> hey, hey, hey, stop. yeah, you won already. stop talking. guy adame, who do you think want? >> my man trv. earlier in the show, we discussed red hat, i said if you like the hat you got to like oracle. >> i appreciate that my voters don't have high frequency wires. >> nice job. . >> i would lean, i would. >> in case you didn't get the vote, we're not done voting yet. we have karen, she usually sits on this side in order to separate dan and josh. we want you to vote on where you prefer karen to sit, the left side of the screen or her normal position on the right side of the screen. >> bear left? >> now you are confusing everybody, everybody at home.
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>> there we go. we are going to close the vote just before we come back in the commercial break. will you find out whether america votes. one trader making a huge bet on oil and gas play. that's straight ahead. [ male announcer ] what if a small company
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a research tool on thinkorswim. eritrade. so on which side of the desk does perk prefer to stay, karen? the right side is the answer. all right. assume your formal position. the viewers have spoken. that's what america wants. >> if this is what america wants, this is ma what america is going to get. >> probably will. >> all right. where she belongs. >> energy has been one of the best performing sectors of 2014. one trader is making a huge bet one fame in this space could rally as much as 30% by year end. dan. >> there is a couple reasons,
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geopoliticals obviously had energy stocks ripping, there has been a lot of take overchatter. when we talk about the name we hit right now, it has to be takeover chatter. it's kinder morgan kmi, options traded ten times average daily vuchls most were in calls. when the stock was 3475, somebody bought 40,000 o. january 42.5, 47.5 call spread. that trade breaks even on january expiration on 42.75, up 23% from here t. max gain is at 47.5 okay. so here's the deal with this trade. it sound like a good trade. they paid 25 vents for that, a million dollars in options premium. the stock is below, the trader loses that. if the stock for some reason was above 47.5, the trader could make $fine million. this is a beg lotto ticket trade, possibly a trader who has brought the stock, leveraging
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the existing long position. who knows? this is the sort of thing retailers, not the trade you want to be doing, nine times out of ten, this trade will expire. >> energys is an interesting trade. we actually had a new high, a 52-week high even though it backed off into the recession. >> i think energy leading the market speaks volumes about where people want to be at the end of this year. energy was one of the areas that rallied the least last year, relative to the market. but from dan's point is well taken, this is not a trade most people want to put on from an option's standpoint. from a trading standpoint. if you want to own kmi for the yield, i don't think you want to guard in and out between the k-1s and everything else. >> check out the website, optionsaction.cnbc.com. dom.
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>> jabil circuit, it reported a loss on its third quarter. it's betish tan expected. better tan expected were the sales helped by a lowering restructuring charge we had from the same a year ago t. company also re-affirmed its outlook in the after hours. you see the stock is up. we call eight half a percent in the trade. i want to say, melissa, when it came to that debate, i was impressed with that bear and vote. >> 12 votes. if i advance faster, somebody else might have won. >> i was trying to stuff the ballot box, myself. >> thank you. we come right back. stay tuned.
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. >> time for the final trades, josh brown. >> long oracle, not short. >> i take profits, ebay, i think ebay is up 48 stop on the down side. >> karen. >> here's one we found in the doghouse, adt. i actually like to look in the doghouse, sometimes we find good values. they blew it with the buy back.
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i think it's active here. >> letter x marks the spot. u.s. steel. >> i'm melissa lee, thank you so much for watching. meantime, "mad money" with jim cramer starts right now. . my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts right now. >> hey, i'm cramer. welcome to "mad money." other people want to make friends. i just want to make you some money. my job, entertain, coach, teach, call me. 1800743 cnbc or tweet me at jim cramer. what

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